Government of Ontario are working to restore dollar Beers for labour Day

10/08/2018

Barely Days Brewery has announced that it will be launching a new beer called Loon Lager at the "buck-a-beer" price point, with a promise that it is "not going to compromise" on quality.

Ford has said buck-a-beer will be available in the province by August 27, in time for Labour Day weekend.

In order to encourage producers to lower their prices, Ford said his government would launch the buck-a-beer challenge, which would offer promotional programs, in-store displays and advertising to those who sell their beer at the minimum price. "The margins keep getting tighter and tighter and you want to invest in your company, to grow and create more jobs".

In 2008 the previous government made a decision to ban Buck-a-Beer by setting a higher minimum price and today the retail price floor sits at $1.25.

"We were elected on a promise to reduce red tape and put the people first", said Premier Doug Ford, who made the announcement while visiting the Barley Days Brewery."This included a promise to bring "Buck-a-Beer" back to Ontario".

The minimum retail price for beer was $1 in Ontario between 2005 and 2008, before the government banned it in 2008.

The Conservatives have said a return to buck a beer would see more competition in the beer market without affecting the province's revenues from beer and wine taxes, which the provincial government has said brought in $589 million in 2016-2017. Once upon a time, you could buy a beer for $1 a bottle.

It is unknown if any additional Ontario craft breweries will participate.

While the buck-a-beer program existed a decade ago, few breweries have shown interest in matching the cheaper price today. "The provincial taxes are probably the single highest component of the cost of beer that consumers purchase in this province".

"Nobody can make beer at $1 a bottle with the Ontario and federal taxes as they are. I just don't think this is something our membership would ever entertain", Mr. Simmons said.

"I'd like to pay less for a case of beer when I go into a store".

However, at least one brewery is willing to embrace buck-a-beer.

The price of beer cans has jumped in recent months because of the escalating trade war with the United States which has slapped a 10-per-cent tariff on aluminium.

"I believe that we can pull this off".

"We are not reducing the tax level", says Vic Fedeli... which essentially says "we are encouraging breweries to eat the cost to participate in the "challenge".

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